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BAE Systems Chosen As Land 121 Preferred Bidder

05 Oct 2007 | Ref. 308/2007
Adelaide, Australia – BAE Systems has been selected by the Australian Government as the preferred bidder for one of the largest Australian Army projects for decades, the next generation of medium and heavy tactical trucks and modular payloads. Minister for Defence, The Hon Dr. Brendan Nelson, announced today that the Australian Government will negotiate the final contractual terms with BAE Systems to meet the medium and heavy truck segment of Land 121 Project Overlander.

The Land 121 Project will replace over 3000 of the Australian Defence Force’s tactical trucks over a six year period, commencing 2009. The contract is expected to have a total value of A$1-1.5 billion (approx GBP436m – 653m / US$880m – 1.3bn). In addition to equipment, the contract includes payload modules, technical services and spare parts for the life of the equipment.

Denny Dellinger, President of BAE Systems Mobility & Protection Systems comments: “Building on the strengths of our global capabilities in the land systems sector, these new vehicles will provide much more capable, higher value assets to the Australian Army than those they replace. We are proud of this decision and look forward to developing a strong relationship with the Australian Defence Force through the execution of this strategically important program.”

Following today’s announcement, a BAE Systems Land 121 project office will be established in Adelaide, “Being close to the future location of the 7 RAR battalion group was an important factor in our choice of location”, Dellinger says. “With an already strong presence in Australia, an important home market for our company, we have plenty of capacity in Adelaide to establish our Land 121 team and embed the technology needed to provide cost effective through life support providing skilled jobs for many years.”

BAE Systems Mobility & Protection Systems, formerly Armor Holdings and Stewart & Stevenson, has produced more than 38,000 Family of Medium Tactical Vehicles (FMTV) for the US Army and other defence forces around the world since 1991.

This latest business success underlines the stellar performance of BAE Systems’ Land and Armaments business which has now established a clear global leadership position. The Company is well placed to seek further growth opportunities in the support and utility sectors of the land systems market globally, in addition to both current wheeled and tracked vehicle programmes and new requirements.

BAE Systems’ business in Australia is committed to being the Australian Defence Force’s through-life capability partner in integrated military systems and support solutions. It combines key skills in engineering and systems integration and is a leading provider of communications, electronic warfare systems, military air support, air defence, mission support systems and intelligence, surveillance and reconnaissance. The Company employs approximately 2,700 people in Australia and supports customers at more than 50 locations in country.

About BAE Systems
BAE Systems is the premier global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 96,000 employees worldwide, BAE Systems' sales exceeded £15 billion (US $27 billion) in 2006*.

*On a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc for the whole of 2006

For further information, please contact:
Jim Parkes, BAE Systems (Australia)
Tel: +61 0 8 8480 7211, Mob: 0412 896 898

John Neilson, BAE Systems
Tel: +44 (0) 1252 384795 Mob: +44 (0) 7802 337704

Issued by:
BAE Systems Australia, PO Box 1068, Salisbury, SA, 5108
Tel: +61 8 8480 8888 Fax: +61 8 8480 8800

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